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    Categories: Public Provident Fund (PPF)

4 steps to revive a dormant PPF account

Public Provident Fund (PPF) account can be opened in post office or certain banks to accumulate money for long-term. Initially, PPF account is opened for 15 years but it can be extended later on for further 5 years and so on. One can pay a minimum amount of Rs.500 to the maximum amount of Rs.1,00,000 p.a. in PPF account. But if , because of some reasons, you failed to deposit minimum amount in any financial year in your PPF account, it will become dormant or inactive account.

In this article, we’ll learn how to make such inactive or dormant PPF account active.

It involves 4 simple steps:

Step 1 (Submit request letter and PPF pass-book)

Write a simple application for the request to revive your dormant PPF account to  your bank or post office where your PPF account is. Mention clearly your name, address, PPF account number, contact details etc.

Submit your PPF pass-book also to check arrears and get it updated.

Step 2 (Deposit of arrears)

Deposit arrears for each of the financial year for which the PPF contribution is not made. A minimum of Rs. 500 is to be paid for each financial year.

Step 3 (Penalty)

In addition to outstanding arrears, a penalty of Rs 50 for each year of default is also payable.

Step 4 (Verification)

The bank or post office will verify all the documents, signature, arrears, penalty etc. and will make your dormant account active. The account holder MUST be present before concerned department for verification.

Some important points you must keep in mind

  • If the investor’s PPF account has already matured, it will not earn any interest from the date of maturity.
  • Matured accounts cannot be revived, but penalty will be payable in order to claim the maturity proceeds.
  • Since a dormant account does not imply that it has been closed, the investor cannot open a new account. The investments must be resumed in the existing account after reactivation.
  • If the account is nearing its maturity, you can place a request for its revival and extension for a further five years to earn interest with or without additional contributions.
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